Bitcoin Cash price slides under a rock with its recovery stifled by FTX bankruptcy news
|- Bitcoin Cash price is back on the drawing board as bulls bank on support at $100 to resume the uptrend.
- FTX, Alameda Research and affiliated companies file for bankruptcy putting further pressure on crypto market.
- BCH must flip a key falling trend line into support to avoid frequent dips below the critical $100 level.
Bitcoin Cash price (BCH) is balancing above $100 after bears snuffed out a bullish spark ignited early Friday. The cryptocurrency market will likely usher in the weekend wading in the murky waters left behind by FTX. All eyes are fixated on BCH’s ability to hold above the crucial $100 level.
FTX commences chapter 11 bankruptcy proceedings
FTX exchange, Almeda Research, and affiliated companies (rumored to be around 130) are in the process of declaring bankruptcy under Chapter 11 amid a liquidity crunch. The exchange is in the spotlight due to allegations of mismanagement of funds.
Deeper problems have continued to surface amid several ongoing investigations into FTX – its subsidiaries, and affiliated companies.
In other news, the firm said on Friday that Sam Bankman-Fried, commonly known as SBF in crypto cycles, has resigned as CEO to pave the way for John Ray III. Ray is taking over a company in chaos. However, in a statement released by FTX, he promised transparency, due diligence and thoroughness in all ongoing investigations.
“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process.
“I want to assure every employee, customer, creditor, contract party, stockholder, investor, governmental authority, and other stakeholders that we will conduct this effort with diligence, thoroughness and transparency,” Ray’s statement reads in part.
The world is watching as the cryptocurrency market endures another bloodbath in 2022. Ray assures investors and stakeholders that the new team under his leadership is ready and able to turn things around. In the meantime, investors are concerned about their holdings with the crypto market delicately yearning for recovery. Bitcoin Cash price has the potential to stretch its leg further, but first, bulls must defend the support at $100 and focus on clearing resistance at $122.
Can Bitcoin price escape the bears’ wrath?
Bitcoin Cash price faces immense overhead pressure, and the news from FTX is not helping. Support at $100 is in place to keep its downside in check and the next few hours could be critical in determining the future direction of BCH.
The Moving Average Convergence Divergence (MACD) donned a sell signal after the 12-day Exponential Moving Average (EMA) (in blue) crossed beneath the 26-day EMA (in red). Similarly, the Relative Strength Index (RSI) holds at 42.51 after recoiling from near-oversold conditions at 30.00.
BCHUSD daily chart
Looking at the daily chart time frame, both indicators show how Bitcoin Cash delicately holds above $100. A daily close below this level could validate extended declines back to the support at $90. If push comes to shove, BCH may revisit the $80 level before buyers consider pushing for another move north.
On the upside, Bitcoin Cash price must break and hold above the 100-day EMA (in blue) at $122, coinciding with a stubbornly bearish falling trend line to sustain the much-awaited swing beyond $145.
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